Voxtur Announces Sale of Debt to Strategic Investors
TORONTO and TAMPA, Fla., Feb. 16, 2023 (GLOBE NEWSWIRE) — Voxtur Analytics Corp. (TSXV: VXTR; OTCQB: VXTRF) (“Voxtur” or the “Company”), a North American technology company creating a more transparent and accessible real estate lending ecosystem, announced today that the Company has completed a sale of the promissory note executed by James E. Albertelli, P.A. (“JEAPA”) for the benefit of the Company, with an outstanding balance of USD$9,773,000 (“Note”), for cash proceeds of USD$7,818,400.
The Note was executed on January 1, 2023, to document the outstanding balance of fees owed by JEAPA, a U.S. based law firm doing business as “ALAW” and controlled by Voxtur CEO Jim Albertelli, to Voxtur under a Services Agreement dated February 3, 2021, between JEAPA and wholly owned Voxtur subsidiary Voxtur Technologies US, Inc. (“Voxtur Technologies”), whereby Voxtur Technologies provides non-legal support services leveraging technologies developed by Voxtur to JEAPA (“Services Agreement”). JEAPA, a multi-state law firm representing mortgage lenders and servicers across the U.S., was substantially impacted by the COVID-19 pandemic and subsequent foreclosure moratoriums, resulting in an accrual of fees under the Services Agreement. To avoid the impact of continued accrual, JEAPA agreed to execute the Note documenting the fees owed. Further, Voxtur Technologies and JEAPA amended the Services Agreement as of January 1, 2023, to reflect the implementation of enhanced default technology developed by Voxtur and to revise the fee structure from a cost-plus model to a per file technology fee model, where JEAPA pays a fee for each file it processes using Voxtur’s specialized default technology. This revised model should better align the interests of the parties and avoid any future accrual of fees under the Services Agreement.
“This is a positive step forward for the Company as it advances our goal of transitioning to a pure SaaS-based model, while also eliminating the related party debt,” said Gary Yeoman, Voxtur’s Executive Chairman. “The default technology that Voxtur has developed presents an opportunity to provide immense value not only to JEAPA, but to other similarly situated law firms in the market as well.”
“The technology solution developed by Voxtur will drive enhanced operational controls and process improvements to ALAW,” said Jonathan Sawyer, Managing Partner of JEAPA (ALAW). “We are excited about this enhanced software offering and the value it will provide to the Firm.”
The sale of the Note brings two strategic investors to Voxtur. Concurrently with the purchase of the Note, JEAPA transferred to the purchasers, in full satisfaction of the Note, 39,092,000 common shares of the Company owned by JEAPA, reflecting a premium negotiated by JEAPA directly with the purchasers. Washington School House, LLC, and Kevin McCarthy, jointly with Leann McCarthy, agreed to purchase the Note based upon their belief in the Company’s mission and confidence in its management team. These investors have more than 65 years combined experience in the U.S. mortgage market and a proven track record of success in the operation of a multi-state real estate law firm, as well as various other real estate related investments.
“I have followed the Voxtur story for some time and am thrilled to become a shareholder of the Company,” said Kevin McCarthy. “I believe Voxtur is uniquely positioned to achieve its long-term growth goals and I look forward to exploring ways to provide additional strategic value.”
Following JEAPA’s transfer of shares in satisfaction of the Note, JEAPA continues to hold approximately 27,400,000 common shares of the Company. This reduces the total number of shares beneficially owned by Mr. Albertelli, removing his designation as a Control Person (as that term is defined in the policies of the TSX Venture Exchange (“TSXV”)).
Voxtur has seen significant growth in recent months despite the market downturn. New products like Voxtur AOL, Appraisal Direct, and Real Property Tax Analytics continue to drive momentum as the Company remains committed to creating a digital future that enhances the consumer experience and lowers the cost of homeownership.
Voxtur is a transformational real estate technology company that is redefining industry standards in a dynamic lending environment. The Company offers targeted data analytics to simplify tax solutions, property valuation and settlement services throughout the lending lifecycle for investors, lenders, government agencies and servicers. Voxtur’s proprietary data hub and workflow platforms more accurately and efficiently value assets, originate and service loans, securitize portfolios and evaluate tax assessments. The Company serves the property lending and property tax sectors, both public and private, in the United States and Canada. For more information, visit www.voxtur.com.
This news release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking information”) which reflect the expectations of management regarding the Company’s strategic initiatives, plans, business prospects, and opportunities. Forward-looking statements should not be read as guarantees of future events, performance or results, and give rise to the possibility that management’s predictions, forecasts, projections, expectations, or conclusions will not prove to be accurate, that the assumptions may not be correct and that the Company’s future growth, financial performance and objectives and the Company’s strategic initiatives, plans, business prospects and opportunities, including the duration, impact of and recovery from the COVID-19 pandemic, will not occur or be achieved. Any information contained herein that is not based on historical facts may be deemed to constitute forward-looking information within the meaning of Canadian and United States securities laws. Forward-looking information may be based on expectations, estimates and projections as at the date of this news release, and may be identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. Forward-looking information may include but is not limited to: the effects of unexpected costs, liabilities or delays; success of software activities; the competition for skilled personnel; expectations for other economic, business, environmental, regulatory and/or competitive factors related to the Company, or the real estate industry generally; anticipated future production costs; and other events or conditions that may occur in the future. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the information is provided. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information include but are not limited to: additional costs related to acquisitions; integration of acquired businesses; implementation of new products; changing global financial conditions, especially in light of the COVID-19 global pandemic; reliance on specific key employees and customers to maintain business operations; competition within the Company’s industry; a risk in technological failure, failure to implement technological upgrades, or failure to implement new technological products in accordance with expected timelines; changing market conditions; failure of governing agencies and regulatory bodies to approve the use of products and services developed by the Company; the Company’s dependence on maintaining intellectual property and protecting newly developed intellectual property; operating losses and negative cash flows; and currency fluctuations. Accordingly, readers should not place undue reliance on forward-looking information contained herein.
This forward-looking information is provided as of the date of this news release and, accordingly, is subject to change after such date. The Company does not assume any obligation to update or revise this information to reflect new events or circumstances except as required in accordance with applicable laws.
NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Voxtur’s common shares are traded on the TSXV under the symbol VXTR and in the US on the OTCQB under the symbol VXTRF.
Chief Investment Officer
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